The situation with Covid-19 is rapidly changing and this article will continue to be updated throughout. For the latest guidelines, please refer to gov.uk.
The Coronavirus Job Retention Scheme has been extended until 30 April 2021, with furloughed employees to receive 80% of their current salary for hours not worked, in order to support businesses as much of the country is put under Tier 3 restrictions. Chancellor Rishi Sunak has also confirmed that he would be extending the government-guaranteed Covid-19 business loan schemes until the end of March.
Under the extended scheme, employers are not required to make a contribution to their employee’s wages for hours not worked. Employers will only be asked to cover National Insurance and employer pension contributions for hours not worked. According to gov.uk, this accounts for just 5% of total employment costs or £70 per employee per month for the average claim. The eligibility criteria for the UK-wide scheme remains unchanged and these changes will apply to all Devolved Administrations.
The Chancellor also confirmed the Budget will take place on 3 March 2021, which will deliver "the next phase of the plan to tackle the virus and protect jobs, so the extensions to the business loan and furlough schemes enable businesses to plan with certainty and access support in the first few months of the New Year ahead of the further update on wider Covid-19 economic support".
Employers will be able to claim for the extension using the existing online system. Claims from 1 November 2020 must be submitted by 11.59pm 14 calendar days after the month you’re claiming for. If this time falls on the weekend then claims should be submitted on the next working day.
Claim for furlough days in
Claim must be submitted by
14 December 2020
14 January 2021
15 February 2021
15 March 2021
14 April 2021
Businesses will now have until the end of March to access the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme, which had been due to close at the end of January.
“We know the premium businesses place on certainty, so it is right that we enable businesses to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support, as well as implementing our Plan for Jobs.”
This article is intended as a guide only. For more information, see gov.uk.
Oh Goodlord Limited is an Appointed Representative of Goodlord Protect Limited for general insurance products and credit broking. Goodlord Protect Limited is directly authorised by the Financial Conduct Authority, registration number 836727. You can check this information on the Financial Services Register by visiting www.fca.org.uk/register or by telephoning 0800 111 6768 (Freephone) or 0300 500 8082 from the UK. The FCA is the independent watchdog that regulates financial services.